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Economics

Exchange rates and balance of payments: US and France

1) Explain how each of the following will affect the relative values of the dollar and the French franc:

-Income growth higher in the United States than in France.
-Inflation higher in France than in the United States.
-A real interest rate higher in the United States than in France.

2) What are the three categories of transactions in the balance of payments? Give an example of each.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9214693

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